Yuan Rebounds as PBOC Sends Strong Message of Support Via Fixing
- Fixing seen as signal PBOC don’t want further yuan weakness
- Yuan broke key level on Friday, spurring global FX volatility
A signal from officials that they are open to letting the yuan weaken risks increasing volatility which may spill over into regional and global currency markets.
Source: Bloomberg
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China’s yuan pared losses seen Friday after the central bank signaled its support for the managed currency via a stronger-than-expected daily reference rate.
The People’s Bank of China set the yuan’s fixing at 7.0996 per dollar on Monday versus 7.2222 as forecast by analysts in a Bloomberg survey — the largest strengthening bias since November. The fixing was set at 7.1004 in the previous session.